CSED Tolling Flashcards
What is CSED (Collection Statute Expiration Date)?
The CSED is the time frame within which the IRS can legally collect a tax debt. It is generally 10 years from the date of assessment. Refer to IRC § 6502.
What does “tolling” mean in the context of CSED?
Tolling refers to the temporary suspension or extension of the CSED, effectively extending the time the IRS has to collect the debt.
What events may cause the tolling of the CSED?
Events that may cause tolling include bankruptcy, offers in compromise, installment agreements, taxpayer living outside the U.S., and filing for a Collection Due Process (CDP) hearing. See IRC § 6503 and related provisions.
How does bankruptcy affect the CSED?
The CSED is tolled for the duration of an automatic stay in bankruptcy plus six months. Refer to IRC § 6503(h).
What is the effect of an Offer in Compromise (OIC) on the CSED?
An OIC tolls the CSED while the offer is pending, plus 30 days if rejected, or during the time that the taxpayer could file an appeal. See IRC § 6331(k)(3).
How does a taxpayer’s absence from the U.S. affect the CSED?
The CSED is tolled if the taxpayer is out of the country for a continuous period of at least six months. Refer to IRC § 6503(c).
How does a request for a Collection Due Process (CDP) hearing affect the CSED?
The CSED is suspended during the pendency of a CDP hearing, plus 90 days. Refer to IRC § 6330(e)(1).
What effect does an installment agreement have on the CSED?
The CSED is generally tolled during the time that an installment agreement is pending, plus 30 days after termination or rejection. See IRC § 6331(k)(2).
Can the CSED be waived by the taxpayer?
Yes, the taxpayer can waive the CSED, but the waiver must be in writing and is subject to certain limitations and rules. Refer to IRC § 6502(a)(2).
How can the accurate CSED be determined?
The accurate CSED can be determined by analyzing the taxpayer’s transcripts and taking into consideration all tolling events. IRS guidance, including the Internal Revenue Manual (IRM) Part 5, provides detailed procedures.
What happens if the IRS attempts to collect after the CSED has expired?
Collection attempts after the CSED has expired are improper, and the taxpayer may have legal remedies.
